Why Argos & eBay's distribution methods can work together in harmony

I have to say, as someone who is more-interested-than-most in the digital marketing space, eBay is one of the only brands I really pay attention to when it comes to their email marketing campaigns. They are often well-targeted, relevant and provide decent value. Hence I was pleasantly surprised to see this email in my inbox recently:

There was an existing partnership between Argos and eBay with many Argos product sold through eBay regularly. However, this extension of the way the channels work together is a great strategic move from both parties.

A few years ago, upon the spark of the digital age, which saw the likes of Woolworths, HMV and Habitat struggle- I was worried that Argos would simply be destined for the same fate. It was surely going to be out-priced, out-producted and out-branded by the likes of Amazon? However, by thinking and accepting that their existing distribution model wasn't going to be sustainable long-term, Argos have adapted their strategy which blurs the lines between the online world and bricks and mortar retailers.

I think the key to success in what Argos is doing is the fact they are so accessible, convenient and efficient. Their Click and Collect service was pioneering, their digital channels are fantastically-integrated with their retail channels and they partner with the best brands- often I don't even have to check if Argos stock something I just presume they will and I'm not often wrong. They also have great, local stores, you don't have to go in to a big town or city to find exactly what you are looking for.

However, this isn't just beneficial to Argos in terms of defining their brand as a digital, well-distributed service. eBay gain something they've never had before- a physical presence in the UK market. So many brands (especially those who are solely online) are realising the importance of an omni-channel experience and that 'human interaction' with the brand. By collaborating with Argos, eBay have a tangible setting in the form of hundreds of stores. 

eCommerce sold us the idea the home delivery is the way forward, however consumers are starting to realise that it is not as convenient as originally thought. Fear of leaving your house whilst waiting for a parcel or having to cart it home on the tube after having it delivered to work or worse, queuing in the post office depot on a Saturday morning- all build the case as to why click and collect has become a phenomenon! Amazon locker was a solution that had won over many consumers and now eBay is matching that with their own offering.... featuring humans!

Not only is this a great strategic move for the two brands, but this will ultimately provide a fantastic experience for the customer. They are able to drop whatever they've sold on eBay at a local Argos store (open late evenings and weekends), pay a rate for P&P which by far rivals the Post Office and provide a tracked and signed for parcel to the customer! 

In terms of change management, the organisational impact is minimal, the infrastructures for delivery and storage are already in place as Argos have been delivering their own products for years and as mentioned above, have the processes down to a T.

I look forward to hearing more about this exciting partnership!

Inside Rolls-Royce

I've been watching the 'Inside...' series on 4OD, a must-watch if you are interested in the luxury goods market!
I especially loved the Rolls-Royce episode which gave an insight into the companies head office and the sales tactics used with high profile customers. Rolls-Royce were creating the Celestial Phantom- their most expensive model ever, containing hundreds of diamonds and documentary shows the rigorous process which is undertaken at the factory and during the design process. Clearly for such a prestigious brand, their cars sell themselves due to the status and authority that comes from owning one of the cars.

However, I was interested to see the types of marketing strategies that Rolls-Royce use in order to target such a highly regarded audience. The typical Rolls-Royce customer may be spending well over £50,000 and almost as much on optional extras to add to the car, therefore the customer service they recieve is fundamental to their loyalty to the brand.

The documentary displayed that most Rolls-Royce customers own 4 or 5 vehicles and therefore retaining such customers is a key priority in their marketing strategy. The salesmen in the car showrooms are highly trained, just as with any car show room, however it is their personal connection with the Rolls-Royce brand that means their passion is revealed and hopefully passed on the customer.

One of the key PR strategies used by the company, is the opportunity for key members of the press, celebrities and other senior influencers to test out the vehicles on a race track, in the hopes that they may write a review/speak about the experience and even that they may be potential buyers... this is classic 'try before you buy' but also an example of getting opinion leaders to form their own recommendations of products. They are also attracting a new selection of young, cool, hip customers which is important to help the brand progress in the future.

The fact that Rolls-Royce are perfectionists when it comes to product design and quality means that they are renowned for providing a consistently impeccable product- there are no reports of one-off disaster products or bad customer experiences as the product checking and factory processes are so strict that it simply doesn't happen at Rolls-Royce! This in itself is a fantastic example of PR!!

 It would be an absolute dream to work in the marketing department at Rolls-Royce, the staff seem to have an extreme passion and love for the brand and their marketing strategy is unique, admirable and seems to work to target customers who enjoy the extremely finer things in life!!

You can watch the show on 4OD- let me know your thoughts!

Steph